New Delhi: The upcoming Index of Services Production (ISP) will rely heavily on Goods and Services Tax (GST) data to estimate output in the services sector, according to the report of the technical committee tasked with designing the index framework.
The committee said GST data will be the primary source for arriving at monthly estimates of services sector production. Where GST data is not available, the index will use a mix of administrative data and the Annual Survey of Incorporated Services Sector Enterprises (ASISSE). This approach would make the ISP a “unique blend” of multiple data sources and methodologies, the report noted.
The ISP is being designed to provide a high-frequency indicator for the services sector, similar to the Index of Industrial Production (IIP) for manufacturing. Services account for more than 50% of India’s GDP, but currently lack a timely, dedicated output index.
The government is expected to roll out the new index after finalizing the methodology based on the committee’s recommendations.
